THE PRESIDENT: Good afternoon. Across the country, Americans are
concerned about the high price of gasoline. Every one of our citizens who
drives to work, or takes a family vacation, or runs a small business is
feeling the squeeze of rising prices at the pump.

To reduce pressure on prices we must continue to implement good
conservation policies, and we need to increase the supply of oil,
especially here at home. For years, my administration has been calling on
Congress to expand domestic oil production. Unfortunately, Democrats on
Capitol Hill have rejected virtually every proposal -- and now Americans
are paying at the pump. When members of Congress were home over the Fourth
of July recess, they heard a clear message from their constituents: We
need to take action now to expand domestic oil production.

One of the most important steps we can take to expand American oil
production is to increase access to offshore exploration on the Outer
Continental Shelf, or what's called the OCS. But Congress has restricted
access to key parts of the OCS since the early 1980s. Experts believe that
these restricted areas of the OCS could eventually produce nearly 10 years'
worth of America's current annual oil production. And advances in
technology have made it possible to conduct oil exploration in the OCS that
is out of sight, protects coral reefs and habitats, and protects against
oil spills.

Last month, I asked Congress to lift this legislative ban and allow the
exploration and development of offshore oil resources. I committed to lift
an executive prohibition on this exploration if Congress did so, tailoring
my executive action to match what Congress passed. It's been almost a
month since I urged Congress to act -- and they've done nothing. They've
not moved any legislation. And as the Democratically-controlled Congress
has sat idle, gas prices have continued to increase.

Failure to act is unacceptable. It's unacceptable to me and it's
unacceptable to the American people. So today, I've issued a memorandum to
lift the executive prohibition on oil exploration in the OCS. With this
action, the executive branch's restrictions on this exploration have been
cleared away. This means that the only thing standing between the American
people and these vast oil resources is action from the U.S. Congress.

Now the ball is squarely in Congress' court. Democratic leaders can show
that they have finally heard the frustrations of the American people by
matching the action I've taken today, repealing the congressional ban, and
passing legislation to facilitate responsible offshore exploration. This
legislation must allow states to have a say in what happens off their
shores, provides a way for the federal government and states to share new
leasing revenues, and ensure the environment is protected.

This legislation should also take other essential steps to expand domestic
production: Congress should clear the way for our nation to tap into the
extraordinary potential of oil shale, which could provide Americans with
domestic oil supplies that are equal to more than a century's worth of
current oil imports. Congress should permit exploration in currently
restricted areas of northern Alaska, which could produce roughly the
equivalent of two decades of imported oil from Saudi Arabia. Congress
should expand and enhance our domestic refining capacity, so that America
will no longer have to import millions of barrels of fully-refined gasoline
from abroad.

The time for action is now. This is a difficult period for millions of
American families. Every extra dollar they have to spend because of high
gas prices is one dollar less they can use to put food on the table or send
a child to school. And they are rightly angered by Congress' failure to
enact common-sense solutions. Today, I've taken every step within my power
to allow offshore exploration of the OCS. All that remains is for the
Democratic leaders in Congress to allow a vote. The American people are
watching the numbers climb higher and higher at the pump -- and they're
waiting to see what the Congress will do.